iii     LEGAL DISCLAIMER OF LIABILITY AND INDEMNITYWhilst an earnest effort has been by the research team to ensure the hi...
iv© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
v                                     TABLE OF CONTENTSEXECUTIVE SUMMARY ……………………………………………………………………………                    ...
vi   Strategies Map …………………………………………………………………………………                                                                  20   ...
vii                                     EXECUTIVE SUMMARYThe research team conducted primary and secondary research to fir...
viiiThe quoted cost of Stream Team’s online solutions suite is $3,500. The cost of the SearchEngine Marketing strategy is ...
ix                                                           PREFACEThe marketing report is written within the framework o...
x                                             ASSUMPTIONSOverall the research team conducted this consultancy with a very ...
1                                             INTRODUCTIONThe Goal of the ReportThe goal of the report is to document the ...
2         OVERVIEW OF CLIENT’S CURRENT SITUATIONThe research team first examines Mahany’s current business environment usi...
3Environmental Audit1 – External Business EnvironmentThe three main components of the External Business Environment are th...
4Bargaining power of customers:Mahany does not have big customers, since no one customer accounts for more than 5% of theb...
5Lastly, Mahany’s customers can divided based on what they purchase. The following is a list ofthe main products and servi...
6                       Quimby Corporation - http://www.quimbycorp.com/                       Quimby’s online store and ca...
7                       Figure 2: A diagram of McKinsey 7s ModelShared Values:Mahany Welding is very much customer focused...
8Strategy:Mahany’s basic business model involves buying welding supplies form suppliers and selling themto welders, in add...
9  Figure 3: Mahany Business Flow Model – Supply/Value ChainCurrent Marketing ActivitiesMahany’s president estimates that ...
10The research team used the 4P’s model1 to further analyze Mahany’s marketing activities.Mahany does not want to compete ...
11SWOT Analysis2The research team next summarizes the findings of the environmental audit using the SWOTanalysis. This ana...
12marketplace. The research team recognizes the fact that this would require a separate back-office system, which is somet...
13                     INTERNET MARKETING OBJECTIVESThe research team’s next task is to articulate the internet marketing ...
14Ansoff’s Growth Matrix1The Ansoff’s Growth suggests four strategies for achieving growth, as depicted in figure 4 below:...
15                                   POSSIBLE STRATEGIESAfter setting the objectives the research team next identifies pos...
16Internet Marketing StrategiesOnline Branding1The online branding strategy would allow Mahany to promote its values, comp...
17Partnerships with CollegesLocal colleges such as Rochester Institute of Technology, SUNY Brockport, and MonroeCommunity ...
18                                  SELECTED STRATEGIESThe research team next selects several internet marketing strategie...
19          Selection Criteria          Cost and Return on Investment          The cost of each proposed strategy is the f...
20It is quiet clear from this benchmark analysis that Mahany is falling behind the curve in terms ofonline presence. It al...
21Online StoreThe Internet is rapidly becoming an indispensable business tool, creating unprecedentedopportunities for org...
22Figure 6: Basic Layout of eBay store Example (eBay)© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake ...
23Figure 7: Advanced Layout of EBay store Example (EBay)© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Ja...
24Managing Sales on eBay - EBay store includes powerful tools to help manage a business. Inaddition to these built-in feat...
25     •    EBay transactions and fee data can be viewed or directly transferred to QuickBooks®, for          record keepi...
26     •    180 easy-to-use customizable design templates to create a personalized, professional          look without hir...
27Option 3: Stream TeamStream team is the local web hosting and developing company which is currently providingMahany with...
28     •    Wholesale / retail pricing depending on login     •    Quantity pricing option     •    Option of showing the ...
29     •    Design options     •    Choice of template editor - Macromedia Dreamweaver, Microsoft Frontpage or Adobe      ...
30Figure 9: Inventory Insertion CostStore Inventory format basic fees:As an eBay Store owner, youll have access to an addi...
31Justifications:    Figure 11: Mahany website statistics.Since the launch of the website in mid 2005, it can be interpret...
32  Fig 13: Mahany website trends.The research team recommends using Stream Team’s solution for the online store. The tota...
33Tactic 2: E-ProcurementDescription:This is the management of the various goods that Mahany purchases from its manufactur...
34Online Branding1The Online Branding strategy builds the Mahany brand online in order to increase the perceivedvalue for ...
35pictures is also recommended as is making training only one toolbar instead of two. A list ofclasses in the training too...
36Figure 15: A Sample Privacy Statement.This change to the site will cost $75, according the Stream Team’s quote, and only...
37these rentals to its site. This section will cost $75 and is user generated so Mahany can easilymake the changes themsel...
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
Mahany Internet Makreting Plan Brick City E Consultants
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Mahany Internet Makreting Plan Brick City E Consultants

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Mahany Internet Makreting Plan Brick City E Consultants

  1. 1. iii LEGAL DISCLAIMER OF LIABILITY AND INDEMNITYWhilst an earnest effort has been by the research team to ensure the high quality and accuracy ofthe report and its recommendations, the members of the research team, Lejla Hajdarhodzic,Sean Liebel, Jake Malarz and Qazi Mohammad shall in no event be held liable for any actions orconsequences that may relate to the report.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  2. 2. iv© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  3. 3. v TABLE OF CONTENTSEXECUTIVE SUMMARY …………………………………………………………………………… viiPREFACE ……………………………………………………………………………………………. ixASSUMPTIONS ……………………………………………………………………………………... xINTRODUCTION ……………………………………………………………………………………. 1 The Goal of the Report ………………………………………………………………………. 1 Mahany Welding Supply …………………………………………………………………….. 1 Analysis and Research Methods …………………………………………………………... 1OVERVIEW OF CLIENT’S CURRENT SITUATION …………………………………………….. 2 Environmental Audit – External Business Environment ………………………………. 2 Porter’s 5 Forces Model …………………………………………………………………... 2 Customer Analysis – Segmentation, Targeting, Positioning ………………………….. 4 Competition Analysis ……………………………………………………………………… 5 Environmental Audit – Internal Business Environment ……………………………….. 6 McKinsey 7s Model ……………………………………………………………………….. 6 Supply/Value Chain ……………………………………………………………………….. 8 Current Marketing Activities ………………………………………………………………. 9 Current Website Traffic …………………………………………………………………… 10 SWOT Analysis ………………………………………………………………………………... 11 Conclusion …………………………………………………………………………………….. 11INTERNET MARKETING OBJECTIVES ………………………………………………………… 13 Ansoff’s Growth Matrix ……………………………………………………………………… 14 Objectives ……………………………………………………………………………………… 14POSSIBLE STRATEGIES ………………………………………………………………………….. 15 Internet Marketing Strategies ………………………………………………………………. 16 Online Branding ……………………………………………………………………………. 16 Online Advertising …………………………………………………………………………. 16 E-commerce Business Models …………………………………………………………… 16 Relationship Marketing ……………………………………………………………………. 16 E-Procurement …………………………………………………………………………….. 16 Partnerships with Colleges ……………………………………………………………….. 17 Training Facility Expansion ……………………………………………………………….. 17 Welding Certification ……………………………………………………………………… 17SELECTED STRATEGIES ………………………………………………………………………… 18 Selection Criteria ……………………………………………………………………………… 19 Cost and Return on Investment ………………………………………………………… 19 Target Market ……………………………………………………………………………… 19 Competition Benchmark Analysis ………………………………………………………... 19© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  4. 4. vi Strategies Map ………………………………………………………………………………… 20 Online Store ……………………………………………………………………………………. 21 Tactic 1: Online Store ……………………………………………………………………... 21 Tactic 2: E-Procurement ………………………………………………………………….. 33 Online Branding ………………………………………………………………………………. 34 Tactic 1: Website Design …………………………………………………………………. 34 Tactic 2: Online Partnerships …………………………………………………………….. 38 Tactic 3: Customer Testimonials ………………………………………………………… 42 Search Engine Marketing ……………………………………………………………………. 45 Tactic 1: Search Engine Optimization …………………………………………………… 45 Tactic 2: Google Adwords ………………………………………………………………… 50 Tactic 3: Online Portals …………………………………………………………………… 56 Relationship Marketing ………………………………………………………………………. 58 Tactic 1: Customer Relationship Marketing …………………………………………….. 58 Tactic 2: User Accounts …………………………………………………………………... 59 Tactic 3: Online Referral System ………………………………………………………… 60 Tactic 4: Online Instruction Videos ………………………………………………………. 61 Tactic 5: FAQ Section ……………………………………………………………………. 62IMPLEMENTATION, METRICS AND CONTROL ……………………………………………….. 63 Timeline of Implementation …………………………………………………………………. 64 Metrics and Controls for Each Strategy …………………………………………………. 64 Internet Marketing Objectives Control …………………………………………………… 65 Online Store Control ………………………………………………………………………. 65 Online Branding Control …………………………………………………………………... 66 Search Engine Marketing Control ………………………………………………………. 66 Relationship Marketing Control …………………………………………………………... 68 The Changed Internal Business Environment – 7s Revisited ………………………… 68 Cost and Return on Investment ……………………………………………………………. 71 Contingency Plans ……………………………………………………………………………. 71EVALUATION OF THE PROJECT ………………………………………………………………... 72CONCLUSION ……………………………………………………………………………………… 73WORKS CITED ……………………………………………………………………………………… 74APPENDIX A – CUSTOMER SURVEY AND FLIER …………………………………………… 77© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  5. 5. vii EXECUTIVE SUMMARYThe research team conducted primary and secondary research to first evaluate Mahany’s currentsituation. This research consisted of competitive benchmark analysis and weekly meetings withthe client. Further research included consultation with internet marketing experts (ThomasCraver and Neil Hair) and outside vendors (Stream Team) and a review of relevant marketingliterature.The research team concluded that the proposed e-commerce strategies should create value forthe current customers in addition to attracting potential new clients. Thus the proposed internetmarketing plan aims at achieving three objectives within the first six months:Market Penetration: 1. Maintain the current 100% customer retention rate through online-enabled customer value creation. 2. During the first six months of the plan’s implementation increase repeat purchase by 10%.Market Expansion: 1. During the first six months of the plan’s implementation increase customer base by 3%, or by 20 customers (on top of the semi-annual 3% growth rate).To achieve these objectives the research team recommends implementing four strategies. Thesewere selected from a pool of possible strategies on the basis of four criteria: cost, return oninvestment, benchmark of competition and the target market. The four strategies and theirunderlying tactics are depicted below. The Online Store strategy facilitates online purchase andthus supports all three internet marketing objectives. The Relationship Marketing strategy andthe Online Branding strategy also work towards the three objectives and they support online salesconversion by creating value for customers. The Search Engine Marketing strategy supports thethree marketing objectives and it promotes the other three strategies.For each tactic the research team specified a set of metrics and targets for measuring progressand success. A number of control tools were also identified, such as Google AdWords andAnalytics, Alexa.com and Stream Team’s website logs and reports. The research team’s timelineof implementation recommends implementing the Online Store, Online Branding and RelationshipMarketing strategies immediately by purchasing Stream Team’s online solutions suite. It isrecommended to implement the Search Engine Marketing strategy next in order to promote theonline store.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  6. 6. viiiThe quoted cost of Stream Team’s online solutions suite is $3,500. The cost of the SearchEngine Marketing strategy is $450. Thus the total estimated cost of the proposed marketing planis $4,000. The projected revenue increase in the first six months is 3% (on top of the semi-annual 3% growth), which amounts to $7,500. Thus the return on investment within the first sixmonths is $3,500. Jun 06 – Nov 06 Dec 06 – May 07 Jun 06 – Nov 07 Dec 07 – May 08Cost $4,000 $300 $450 $300Increase In $7,500 $7,500 $7,500 $7,500RevenueReturn on $3,500 $7,200 $7,050 $7,200InvestmentAggregate ROI $3,500 $10,700 $17,750 $24,950© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  7. 7. ix PREFACEThe marketing report is written within the framework of five questions1. The first question is anoverview of the client’s current business situation. The research team answers this questionusing the Environmental Audit and the SWOT analysis. The second question involves settinggoals for the marketing plan and it is answered in the Internet Marketing Objectives section. Thenext question looks at the possible means of achieving the set objectives. It is here, in thePossible Strategies section, that the research team considers the client’s and the marketingplan’s goals and finds creative online means of reaching these goals. The next question,answered in the Selected Strategies section, requires an analysis of the proposed strategies andselection of the optimal mix of strategies. Here, the research team develops each strategy anddescribes in detail the tactics that support each strategy. Finally, the fifth question deals with theimplementation, cost, return on investment, and control of the marketing plan.The research team recommends reading the report in the order it is written. The first section (thefirst question) is a testimony to the research team’s due diligence in the research it conducted toclearly understand Mahany’s business, customers, competition, and goals. The objectivessection provides the focus of the report and is crucial to the remainder of the report. It is alsoimportant to recognize the fact the research team considered a wide range of strategies and thatit chose the optimal ones after careful analysis.The report clearly explains how each strategy works towards the set objectives. Each tactic iscarefully explained and precise details are provided on how it is to be implemented. Theresearch team provides the metrics, targets and tools for measuring the success of each tactic.These last two sections, Selected Strategies and Implementing, Metrics and Control, are equallycrucial to grasping the main thrust of this report.1 Gilligan, C. AND Wilson, R.M.S., 2003. Strategic Marketing Planning. Burlington: Butterworth-Heinemann© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  8. 8. x ASSUMPTIONSOverall the research team conducted this consultancy with a very clear understanding of theclient’s needs and his attitudes towards the proposed ideas. This was done thanks to the weeklymeetings with Mahany’s president. As such, the team was operating under only a small set ofassumptions.The first assumption concerned the budget for this plan. The client did not specify what he wouldbe willing to spend on the proposed internet marketing campaign. He did say that he was willingto invest into the proposed ideas if they were justified by return on investment estimates. Basedon this assumption the research team did not stick to a strict budget but it did provide the returnon investment estimates for the proposed plan.The research team also made a number of assumptions regarding Mahany’s customers. Theproposed customer survey was not published on Mahany’s website in time for the results toweigh in the recommendations of this proposal. As such, the research team had to rely on theclient’s experience with his customers and on benchmarking against the competition.While the cost estimates contained within this report are fairly accurate, the returns on investmentfigures are based on the assumptions that the minimum targets and objectives are met on time.These figures may differ depending on actual customer demand after the implementation of theonline store.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  9. 9. 1 INTRODUCTIONThe Goal of the ReportThe goal of the report is to document the research team’s consultancy process and to present thefindings, suggestions, and conclusions of the proposed Mahany internet marketing plan. Thereport follows the research team’s efforts to audit the client’s current situation, to set the internetmarketing objectives, to identify and select strategies and to specify costs, return on investmentestimates, metrics, and controls.Mahany Welding SupplyMahany Welding Supplies is a family-owned small business located in Rochester, New York. Inaddition to selling welding supplies and equipment Mahany also offers welding certificationcourses, welding courses, consultancy, and equipment rental. Mahany Welding is very muchcustomer focused and its mission statement is: “We don’t have customers; we have friends thatbuy from us”.Mahany’s shared values emphasize trust, customer retention, frequent contact, quality over price,and building a customer for life. The company prides itself for providing a complete service ratherthan just a product, and for creating a “clean image” within the welding industry. Mahany’s goal,as conveyed by the company’s president, is to become the best welding supply store inRochester.Analysis and Research MethodsThe research team referred to several models during its analysis process. These included: Environmental Audit Porter’s 5 Forces Model Customer Segmentation, Targeting, Positioning Competition Benchmark Analysis Matrix McKinsey 7s Model SWOT Analysis Ansoff’s Growth MatrixThe research team conducted the following primary research: Weekly meetings with Mike Krupnicki, president of Mahany Consultancy with Thomas Craver, Web/Database Specialist Consultancy with Neil Hair, Professor of Marketing at RIT Benchmark Analysis of 7 competitorsThe research team designed a customer survey which Stream Team is in the process ofpublishing (on Mahany’s website). A copy of this survey is found in Appendix A. The team alsodesigned a flier which the client mailed out to his current customers, along with their monthlystatements. The flier can also be found in Appendix A. Secondary research of relevant literaturewas also conducted to further substantiate the research team’s findings.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  10. 10. 2 OVERVIEW OF CLIENT’S CURRENT SITUATIONThe research team first examines Mahany’s current business environment using theEnvironmental Audit framework. The team’s findings are then summarized in the SWOT Analysisand appropriate conclusions are drawn. This analysis forms the basis for the next stage ofplanning, namely setting the objectives and selecting the strategies.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  11. 11. 3Environmental Audit1 – External Business EnvironmentThe three main components of the External Business Environment are the Porter’s 5 Forcesmodel, the analysis of the customer base and the overview of the competition.Porter’s 5 Forces Model2The Porte’s 5 Forces Model allows the research team to assess the competitive nature of thewelding supply industry. Figure 1 below depicts this model, and what follows is its application toMahany Welding. Figure 1: A diagram of Porter’s 5 ForcesBargaining Power of Suppliers:The research team looked at several big suppliers, such as Miller Electric and Airgas, todetermine how influential these companies are within the welding supply industry. Unfortunately,given the fact that Mahany is a small company, compared to some of its suppliers, it does nothave any influence on the business operations of its suppliers. As such, the bargaining power ofMahany’s suppliers should be considered.Bargaining Power of New Entrants:The research team did not identify any recently formed welding supply stores. Because thebarriers to entry are quiet high in this industry it is safe to assume that the bargaining power ofnew entrants will be marginal.1 BROWNLIE, D. 1999. Benchmarking your marketing process. Long Range Planning. 32 (1), 88.2 REIMANN, C., R. 1989. Sustaining the competitive advantage. Planning Review. 17 (2), 30.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  12. 12. 4Bargaining power of customers:Mahany does not have big customers, since no one customer accounts for more than 5% of thebusiness. Furthermore, Mahany sells welding supplies to a wide range of industries, whichreduces the company’s exposure to downturns in certain industries. Lastly, as described byMahany’s president, the business is not seasonal and the demand for certain products, such asthe welding gas canisters, remains steady. Thus the bargaining power of any single one customeris not that great.Threat of Substitutes:There exists a threat of current customers switching to other suppliers, be they online or offline.The research team learned of several unsuccessful attempts by the competitors to stealMahany’s current customers. It is unclear how big this threat is but it should certainly beconsidered as more companies start buying their supplies online.Conclusion – Competitive Rivalry Within the Industry:As more companies switch over to e-procurement the welding supply industry will become morecompetitive. The research team observed this increased competition on the national scale andsuspects that it is only a matter of time before smaller companies, such as Mahany, Jackson orDanes also experience it. It is therefore crucial for Mahany to prepare for this shift byimplementing the right e-commerce strategies.Customer Analysis – Segmentation, Targeting, Positioning1Customer Analysis allows the research team to better understand Mahany’s customers and toidentify potential new ones.Segmentation:Mahany’s current customer can be segmented based on several criteria, including the customer’sindustry, volume of business, geographical location and the types of products/services itpurchases.Most Mahany customers can be categorized within the following industries: Sheet metal companies Fabrication businesses (building companies) Trucking companies Collision shops Farmers Highway department Other entities that have a maintenance department Private individuals and hobbyistsMahany’s customers can also be divided into three revenue groups: the top 25 customers, thenext 700 active customers and a couple thousand of other, inactive, customers that reside inMahany’s database. Geographical segmentation reveals that most of Mahany’s customers arelocated within a 40-mile radius of the company, whilst others remain in the Western New Yorkarea.1 MAGRATH, A. 1988. Segmentation and differentiation positioning strategies are timeless. Marketing News. 22 (22), 18.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  13. 13. 5Lastly, Mahany’s customers can divided based on what they purchase. The following is a list ofthe main products and services sold by Mahany: Welding supplies (consumable goods such as welding wire) Welding capital equipment (such as welding machines) Welding training Welding certifications ConsultancyTargeting:The research team identified local area customers (within a 40-mile radius) as the current targetmarket. Possible target markets, besides the current one, include nationwide customers fromwithin the same industry as current customers.Positioning:In order to further penetrate the current market, and to expand into new markets, Mahany needsan e-commerce business model. The research team believes that this approach will be the mosteffective method of reaching the desired target market.Competition AnalysisMahany’s president estimates that there are roughly 5,000 welding distributors in the US. Theresearch team has identified and examined several competitors that can be classified into one ofthree categories: direct local, direct national and indirect.Direct Local Competitors:Mahany’s biggest local direct competitors include: Jackson Welding Supply - http://www.jacksonweldingsupply.com/index.php Jackson Welding Supply is seen as the current market leader in Rochester but it is declining. Rochester Welding Supply - http://www.rochweld.com/main.shtml Rochester Welding Supply Corporation is wholesale and retail distributor of industrial gases and other welding equipment. Danes Welding Supplies - http://www.danesweldingsupplies.com/ Danes Welding Supplies is another local distributor of welding supplies and equipment.Direct National Competitors:Mahany’s direct national competitors tend to be bigger firms. These include the following: Cyberweld - http://www.cyberweld.com/ Cyberweld is an impressive online store. It implements Yahoo’s E-Commerce solutions, including an online store and PayPal. Indian Oxygen Company - http://www.indianaoxygen.com/ Indiana Oxygen is a family-owned welding supply store. Its website contains an excellent product catalog and links directly into an e-Bay online store.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  14. 14. 6 Quimby Corporation - http://www.quimbycorp.com/ Quimby’s online store and catalog are perhaps the most basic ones from the list of websites that were thus far reviewed by the research team. Airgas - http://www.airgas.com/ Airgas is perhaps Mahany’s biggest national competitor. It is a big company and its online store and catalogs are exemplary.Indirect Competitors:The research team identified several indirect competitors that do not specialize in weldingsupplies by nonetheless sell them. The two main categories that these indirect suppliers fall intoare mailing catalogs and local industrial suppliers.The major mailing catalogs include the following: Grainger catalog MSC - http://www1.mscdirect.com/cgi/nnsrhm McMaster Carr - http://www.mcmaster.com/Some of the local industrial suppliers include the following: Hanes Supply - http://www.hanessupply.com/ Abrasive Tool Company - http://www.aaabrasives.com Brede Supply - http://www.bredesupply.com/ Admor - http://www.admor.co.uk/ Specialty Tool Depot - www.specialtytoolsusa.com Tractor Supply - http://www.mytscstore.com/Environmental Audit – Internal Business EnvironmentThe main components of the Internal Business Environment are the 7s Model, Supply/ValueChain, and the current marketing activities.McKinsey 7s Model1The McKisney 7s Model is used to analyze Mahany’s internal business operations andorganizations. The seven components of this model are depicted in figure 2 below.1 Kaplan, S., R. (2005). How the Balanced Scorecard Enhances the McKinsey 7-S Model [online]. Harvard Business Online.Available from:http://harvardbusinessonline.hbsp.harvard.edu/b02/en/common/item_detail.jhtml?id=B0503D [Accessed 4 May 2005].© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  15. 15. 7 Figure 2: A diagram of McKinsey 7s ModelShared Values:Mahany Welding is very much customer focused and its mission statement is “We don’t havecustomers; we have friends that buy from us”. Mahany’s shared values emphasize trust,customer retention, frequent contact, quality over price, and building a customer for life. Thecompany prides itself for providing a complete service rather than just a product, and for creatinga “clean image” within the welding industry. Mahany’s goal, as conveyed by the company’spresident, is to become the best welding supply store in Rochester.Structure:Mahany has two facilities that act as store houses and distribution centers for welding supplies.There are only two levels of management that comprise of the president and everyone else.Systems:Mahany’s current website is hosted and supported by Stream Team. The Stream Team canimplement an e-commerce module into the website along with other upgrades. Mahany’s currentaccounting system has been described as a “fortress” by the company’s president. This refers tothe fact that the consultant who built and maintains this system is not keen on changing it orallowing any one else to access it. This presents a possible problem, and Mahany’s president hasindicated that he is willing to purchase a separate accounting system for the e-commerceventure.Style:Mahany’s business style focuses on quality, not quantity of business, and on building a customerfor life. This means that customer retention and increase in repeat purchases is sought in favor ofnew customer acquisitionStaff and Skill:Mahany employs fewer than 20 staff members. There is only one salesman and no one is incharge of marketing. Mike Krupnicki, the president, fulfills many of the roles within the companythat are not covered by any particular staff member. Outside consultants, such as the StreamTeam, are hired to fulfill other tasks (such as managing the website).© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  16. 16. 8Strategy:Mahany’s basic business model involves buying welding supplies form suppliers and selling themto welders, in addition to selling training and certifications, renting equipment and offering advice.Mahany’s business strategy focuses on customer retention and increasing repeat purchase,especially from the top 25 customers. This really is a defensive strategy which yields annualgrowth of roughly 6%.Supply/Value Chain1In order to map out Mahany’s supply chain the research team interviewed the company’spresident and conducted online research. Figure 3 below depicts the Mahany’s supply chain andit helps one visualize how customer value is created and added on along this chain.1 FOSTER, T., 2007. Into the depths of the I-E-I framework: using the internet to create value in supply-chain relationships. Supply ChainManagement, 12 (2), 96.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  17. 17. 9 Figure 3: Mahany Business Flow Model – Supply/Value ChainCurrent Marketing ActivitiesMahany’s president estimates that the company holds a 15% local market share in the weldingsupplies industry. On the national scale the firm’s $2.5 million annual revenue is small comparedto the $2 billon industry. Mahany’s annual marketing budget is roughly $10,000 (plus give-aways),$6,000 of which is spent on an ad in Yellow Pages. Most of the new sales at Mahany are madeby the one salesman over the phone. New customers tend to learn about Mahany throughreferrals. Other than these few efforts Mahany does not do much marketing.Mahany’s marketing objective is to increase repeat purchase and to maintain a high customerretention rate (which is close to 100%). The company wants to increase the visibility of all itsproducts within the current customer base in order to reach this objective.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  18. 18. 10The research team used the 4P’s model1 to further analyze Mahany’s marketing activities.Mahany does not want to compete based on price, because in order to do so it would have tosignificantly cut its profit margins. Since the highest margins are earned on the consumableproducts, such as the welding gases and wires, Mahany wants to focus on selling and promotingthese. Unfortunately the promotion of these products has been limited to what the research teamalready pointed out in the preceding paragraphs. Similarly, the placement of these products hasbeen restricted to the two physical Mahany stores.Current Website TrafficThe research team was able to obtain Mahany’s current website statistics from Stream Team’swebsite logs and reports. The table below lists these statistics. From this table it appears thatMahany’s website is attracting 55 unique visitors per day on average, or 1650 visitors a month. General Statistics Hits Entire Site (Successful) 641,021 Average Per Day 815 Home Page 27,677 Page Views Page Views (Impressions) 194,199 Average Per Day 247 Document Views 75,607 Visits Visits 43,245 Average Per Day 55 Average Visit Length 00:04:17 Median Visit Length 00:01:08 International Visits 3.4% Visits of Unknown Origin 10.86% Visits from United States 85.73% Visitors Unique Visitors 10,412 Visitors Who Visited Once 7,6061 MA, H. 2006. Key components and implications of entrepreneurship: A 4-P framework. Journal of Business Venturing,21 (5), 704.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  19. 19. 11SWOT Analysis2The research team next summarizes the findings of the environmental audit using the SWOTanalysis. This analysis outlines Mahany’s core strengths and how these can be used to overcomethe firm’s weaknesses, minimize threats and take advantage of opportunities. Strengths Weaknesses• Good distribution business • Size disadvantage over bigger• Personnel – experience, passion and competitors enthusiasm • Human resources management• Well financed • Only recently hired an outside salesman• Size advantage over bigger competitors • Company is in transition• Only 2 layers of management • Lack of e-commerce business• Facility and training lab • Lack of marketing staff Opportunities Threats• E-commerce • AirGas (customer loss)• Offer training to new markets (convicts, • Growth of e-commerce immigrants) • New York State Government• More work with colleges • Other industrial supply firms that sell• Increase repeat business within the welding supplies and equipment current customer base• Weakness of competitorsConclusionThere are several conclusions that can be drawn from the preceding two sections. GivenMahany’s strong focus on keeping current customers happy, the selected e-commerce strategiesshould create value for the current customers in addition to attracting potential new clients. Inorder to increase repeat purchase within this customer base Mahany wants to increase thevisibility of all its products. This certainly can be achieved using e-commerce.Mahany is also interested in using e-commerce to pull in new customers. The company’spresident has expressed the desire to separate the online markespace from the offline2 AUTRY, C. AND BOND, E. AND HARVEY, M. AND NOVICEVIC, M. 2004. Dual-perspective SWOT: a synthesis of marketing intelligence andplanning. Marketing Intelligence & Planning. 22 (1), 84.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  20. 20. 12marketplace. The research team recognizes the fact that this would require a separate back-office system, which is something the client is willing to implement.The internet marketing campaign should carry several themes that are in concert with Mahany’sshared values and other marketing efforts. The website, for example, should convey Mahany’sfocus on customer relationship building, the company’s competitive advantage (after salessupport, knowledge solutions, staff) and the clean image. It should also promote Mahany’sinvolvement in the community.Lastly, the research team recognizes the difference between products that can be categorized as“razors” (such as the welding machines) and the “razor blades” (the consumable products suchas welding gas). It is important to make this distinction because the “razor blades” yield higherprofit margins and thus should be promoted more than the “razors”.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  21. 21. 13 INTERNET MARKETING OBJECTIVESThe research team’s next task is to articulate the internet marketing objectives, using the analysisof the previous section as the basis for this process.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  22. 22. 14Ansoff’s Growth Matrix1The Ansoff’s Growth suggests four strategies for achieving growth, as depicted in figure 4 below: Figure 4: A diagram of Ansoff’s MatrixThe research team recommends pursuing two growth strategies. The first one is marketpenetration, and this focuses on capturing a wider current market share. The second one ismarket expansion, or capturing new customers from different markets.ObjectivesThe research team has set the following as the objectives for each growth strategy:Market Penetration: 1. Maintain the current 100% customer retention rate through online-enabled customer value creation. 2. During the first six months of the plan’s implementation increase repeat purchase by 10%.Market Expansion: 1. During the first six months of the plan’s implementation increase customer base by 3%, or by 20 customers (on top of the semi-annual 3% growth rate).1 ALLAN, P. 2002. Hornby Trains and Ansoff’s Matrix. Business Review. 8 (3), 1.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  23. 23. 15 POSSIBLE STRATEGIESAfter setting the objectives the research team next identifies possible means reaching them.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  24. 24. 16Internet Marketing StrategiesOnline Branding1The online branding strategy would allow Mahany to promote its values, competitive advantage,and its value proposition. This strategy has the potential to attract new customers and increaserepeat purchase.Online Advertising2Online advertising is one of several strategies that can be used to draw traffic, and thus potentialcustomers, to Mahany’s website. Other strategies for achieving this include search engineoptimization, portal registration, and email.E-commerce Business Models3There are several e-commerce business models that Mahany can adopt in order to launch its e-commerce venture. While certain models, such as an online auction host, are not practical othermodels, such as online infomediary or an online store, are considered by the research team.Relationship Marketing4Relationship Marketing, or Customer Relationship Management (CRM), is a powerful onlinestrategy for building and strengthening customer relationships. It can be effectively used within acompany that is already customer-focused.E-Procurement3The E-Procurement strategy involves utilizing the internet to fine-tune a company’s supply chainmanagement process. This can result in reduced procurement costs and greater customer value.1 ROWLEY, J., 2004. Online Branding. Online Information Review, 28 (2), 131.2 NICHOLSON, S. AND SIERRA, T., 2006. How much of it is real? Analysis of paid placement in Web search engine results.Journal of the American Society for Information Science and Technology, 57 (4), 448.3 JAWORSKI, B. J. AND RAYPORT, J. F., 2003. Introduction to e-Commerce. 2nd ed. New York: McGraw-Hill/Irwin.4 GRONROOS, C., 1996. Relationship marketing: strategic and tactical implications. Management Decision. 34 (3), 5.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  25. 25. 17Partnerships with CollegesLocal colleges such as Rochester Institute of Technology, SUNY Brockport, and MonroeCommunity College are already using some of Mahany’s services such as training. This strategywill become useful online with adding links to their webpage which will enhance the associationwith educational facilities.Training Facility ExpansionThe expansion into a new training facility will be a huge opportunity for Mahany, to create moretraining traffic. The area needed in order to expand facilities already exists, and Mahany can usethe Internet to find new markets for training new elders.Welding CertificationA possible strategy Mahany is pursuing is government certification for welding professionals,which could potentially become a large market. The Internet would enable Mahany to advertisethe certification program as well as find new markets online or offline.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  26. 26. 18 SELECTED STRATEGIESThe research team next selects several internet marketing strategies based on certain criteria.The team then explains how each strategy contributes to achieving the objectives and thenoutlines the specific tactics for each strategy.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  27. 27. 19 Selection Criteria Cost and Return on Investment The cost of each proposed strategy is the first selection criteria used by the research team. Given the fact that the budget for this marketing plan is relatively small the research team rules out those strategies that heavily rely on expensive software, such as supply chain management and SAP. The return on investment (ROI) of each strategy is also considered and used to pick out only those strategies that will yield the highest returns. Relatively inexpensive strategies such as search engine optimization, webpage redesign and online store are thus considered ideal. Target Market The second selection criteria are target markets of this marketing plan. Mahany clearly wants to focus its efforts on attracting local customers from within the Western New York sate area. As such the selected strategies should not overreach in an effort to attract national customers. This means that complex CRM systems will not be necessary and thus they will not be considered for this marketing plan. Competition Benchmark Analysis The research team also bases its selection of strategies on what the competition is doing. The following table depicts a matrix of various online marketing tactics. It also indicates which competitors have already adopted each tactic. Competitor Client Online Marketing Airgas Jackson Cyberweld Rochester Indiana Danes Quimby Mahany Tactic Welding OxygenOnline Store Yes Yes Yes No XOnline Catalog Yes Yes Yes NoGoogle Ads Yes Yes Yes Yes Yes NoPortals Yes Yes Yes Yes NoForums NoUser Accounts Yes Yes NoCustomer Yes NoTestimonialsOnline Referrals NoFAQ Section Yes NoCustomer Feedback Yes Yes Yes Yes NoOnline Customer Yes Yes Yes NoSupportSearch and Yes Yes Yes NoNavigation © 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  28. 28. 20It is quiet clear from this benchmark analysis that Mahany is falling behind the curve in terms ofonline presence. It also appears that certain online tactics, such as Google Ads, the online storeand online portals, are used by most of the competitors. Other online tactics, such as onlinereferrals, have not yet been tired by the competition. Mahany can use these tactics to not onlycatch up to its competitors but to also get ahead of the curve.Strategies MapFigure 5 below depicts the four strategies and how they fit within the framework of this marketingplan. The Online Store strategy facilitates online purchase and thus supports all three internetmarketing objectives. The Relationship Marketing strategy and the Online Branding strategy alsowork towards the three objectives and they support online sales conversion by creating value forcustomers. The Search Engine Marketing strategy supports the three marketing objectives and itpromotes the other three strategies. Figure 5: A diagram of the Strategies Map© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  29. 29. 21Online StoreThe Internet is rapidly becoming an indispensable business tool, creating unprecedentedopportunities for organizations of all sizes. At the same time, consumer Internet usage is growingdramatically around the world. A well-designed online store can create competitive advantage inthe marketplace, develop loyal customers, and most importantly increase your bottom line. Thisstrategy creates an additional channel to reach current and new customers. As such, it workstowards increasing repeat purchase and overall sales.Tactic 1: Online StoreDescription:This is exactly what one may intuitively understand. This is they way B2B markets are headed inthe future. The online store works like a mail order business, except the organization who isselling the products expand their reach to get customers to a global level. With the help of theSEO, buyers can get on Mahany’s website and purchase any of their products. If they are willingto pay the price for shipping and handling, they can have their product. Let it be kept in mind thatMahany does not only want to sell welding products, but they also want to sell welding solutions.Execution:There are three online store systems that the consultants have come up with for Mahany.Option 1: EBay StoreEBay is its own world. For its popularity as an electronic auctioneer, millions find what they wantjust by using EBay’s SEO. They provide various online solutions for business who want to makethat step. They having their own payment systems using credit cards, checks and Pay Pal. EBayhas made it easy for a small company, with one or two extra staff member, such as Mahany tomake good margins on eBay. The online Auctioneer provides three solutions for hosting stores.Basic Store - The basic store is an ideal solution for lower-volume sellers who already sell oneBay but want to take the next step with an easy-to-use, customizable Web store. This is viablefor Mahany if they are trying to get rid of certain special inventory which might have accumulatedover the years, or was the product of a sunk cost.Featured Store - The featured store provides all of the benefits of a Basic Store plus moreadvanced customization and business tools. This is a more comprehensive solution for a small tomedium-sized seller who wants to aggressively grow their online business.Anchor Store - An Anchor store provides all of the benefits of a Featured Store plus increasedmarketing support, making it an optimal solution for larger-volume sellers who are looking formaximum exposure on eBay. Figures 6 and 7 below depict the Basic and the Anchor stores.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  30. 30. 22Figure 6: Basic Layout of eBay store Example (eBay)© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  31. 31. 23Figure 7: Advanced Layout of EBay store Example (EBay)© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  32. 32. 24Managing Sales on eBay - EBay store includes powerful tools to help manage a business. Inaddition to these built-in features, some of the most popular eBay Seller Tools are offered free orat a discounted price as a benefit of your eBay stores subscription. Mahany can list items usingthe “Sell Your Item form” or its favorite “seller tool”. All listing formats, including Auction-style,Fixed Price, and Store Inventory, will automatically appear in the Store.Store Inventory - Mahany will have exclusive access to the Store Inventory listing. This listsproducts for longer durations. Store Inventory is complementary to Auction-style and Fixed Pricelistings. EBay also provides tutorials which help learn the inventory management software.Store Inventory listings appear in your Store with other regular Online Auction and Fixed Pricelistings. They also appear in certain circumstances on eBay.com search results pages.Visibility on Ebay - When using eBay, Mahany’s store Inventory items will appear in the followingportals: • eBay.com search and browse results (when eBays main search returns 30 or fewer Auction-style and Fixed Price results) • Mahany’s eBay Store can filter search results and Cross Promote related goods. (This is consistent to Mahany’s philosophy of providing welding solutions) • Buy It Now tab (matching Auction-style and Fixed Price results) • Web searches (see Search Engine Optimization) • eBay Express (for qualifying Sellers and items) • eBay express is a faster and easier method for customers who don’t want to deal with auctions. Everything on eBay Express is offered at a fixed price by top eBay sellers. This is when just in time sales can occur for MahanyWhen customers on eBay express are purchasing from multiple merchants into one shoppingcart, it is possible that some of the products that a purchaser will add to their shopping cart willbelong to the competitor. This allows the purchases to sort out the suppliers and get the bestprice.EBay Tools - Listing and Sales Management • Markdown Manager: Sales can be increased by creating a Sale that discounts the prices of your items. • Vacation Hold: It is possible to put the Client’s listings and Store "on hold" while business is closed using Vacation Hold. Client can add messages to listings so that buyers know when the seller is not doing business and when they will be back online. This tool comes free with an eBay store. • Turbolister2:Turbolister2 allows more goods to be sold in less time; this is a free downloadable tool. Using Selling Manager saves time managing sales, re-listing items, and communicating with buyers. This tool comes free with an eBay store. • Selling Manager Pro: Allows to Automate, improve, and streamline high-volume sales. Also manages listings, sales, inventory, feedback, and customer emails in bulk. Plus, use the Listing Designer. This tool comes free with Anchor and Featured stores. • Picture Manager: Picture Manager is eBays fully integrated picture hosting solution. The client may upload, host, and organize photos from my eBay, and add multiple pictures to various listings. • Picture Storage space: Basic Store: 1 MB Featured Store: 1 MB Anchored Store: 1 GB • Accounting Assistant© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  33. 33. 25 • EBay transactions and fee data can be viewed or directly transferred to QuickBooks®, for record keeping.Payments & Shipping • Pay Pal: Pay Pal is a fast, easy, and secure way to receive payments on eBay. Listings that offer Pay Pal are 6% more likely to sell and experience a 5% average increase in final price. • Shipping Center: Shipping Center can be used to order postage, manage shipments, print labels, and track packages right from My eBay with no fees. Purchase and print UPS and USPS postage/shipping labels and order free package pick-ups.Option 2: Pro storesPro Stores is ideal for individuals and businesses who want to reach new customers, grow onlinesales, and accelerate business growth.1Pro Stores can help Mahany: • Enhance brand with a customizable online storefront and a personalized web address • Gain a competitive advantage in the marketplace by never missing a single opportunity to make a sale • Grow online sales and accelerate business growth through multiple online sales channelsPro Stores offers a full range of e-commerce functionality, beginning with entry-level catalog,shopping cart, real-time transaction processing, extending to high-end inventory management,and sophisticated supply chain communication. You can build customized online catalogs, runspecial promotions, offer affiliate programs and frequent buyer clubs, cross-sell and up-sellproducts, perform detailed tracking of business metrics, and more.Pro Stores let you present your best face to the outside world, but it also gives you unparalleledability to manage the internal workings of your business. It works with the tools you already use,such as Excel and other common applications.This option lets our client subscribe to four types of services that Pro Stores provides. However,we recommend fusing with only one option “Pro Stores Advanced” due to the Size and nature ofMahany’s business.This suite is designed for small to medium sized B2B or B2C businesses that want to grow theirsales and streamline operations with advanced merchandising, promotion, inventorymanagement, and payment features.This is great product for the client due to the following reasons:Pro Stores Advanced is a complete e-business system designed for small to medium retail orservice businesses that want to grow their sales and streamline operations with advancedmerchandising, promotion, inventory management, and payment features.Pro Store Tools - Website Hosting and Set Up: • Website hosting with 10 GB storage space • Personalized domain name registration • Up to 100 unique email boxes • 200 GB/month data transfer1 ProStores an eBay Company. ©ProStores Inc. ProStores and the ProStores logo are trademark of ProStore Inc. Bay and the eBaylogo are registered trademarks of eBay Inc. Available at: http://prostores.com/ [Accessed May 15, 2007].© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  34. 34. 26 • 180 easy-to-use customizable design templates to create a personalized, professional look without hiring a web designer • Ability to integrate 3rd party functions (including Dreamweaver, Flash and MP3s) to further customize your stores look and feel • Toll-free phone number for 24/7 technical support plus priority email support and online help • Payments • Shopping cart with secure and SSL enabled checkout, plus password protected access rights to different groups (employees, vendors, etc), anonymous checkout and shipping calculator added to checkout pages • Real-time credit card payment processing, plus Pay Pal, Wordplay, store card, checks, and money orders • Additional payment options: purchase orders, internal department orders and cash (COD) orders • Integrated with FedEx®, UPS®, USPS®, or Canada Post®, or create your own custom shipping tables • Sophisticated tax calculation functions • Sale Management • Schedule recurring billing for subscriptions, services, installment payment options, and "product of the month" clubs • Enable the sale of downloadable products such as software, e-books, and music • Shoppers can store their shopping cart if they arent ready to complete a purchase, and can come back to add to their cart or pay for their order • Buyers can save frequent shopping cart orders to make repeat purchases quick and easy • Robust order management system allows you to update orders, issue credit, and create reporting • Add invoices for orders taken by phone, in person, or via email • Upload and share your product, order and customer information with QuickBooks®, Access and Excel • 17 sophisticated reports to better manage your Pro Store • Merchandising and Marketing • Advanced promotional capabilities, including storewide sales, quantity discounts, and promotion codes • Issue store credits for orders, goodwill or promotions • Create unlimited pages and sell an unlimited number of products * • Organize and cross-reference your product catalog by category, product name, or manufacturer • Powerful search engine lets your customers search by price, keyword, SKU, category, subcategory, price range or product name • Daily submission to popular shopping search engines including Yahoo!® Shopping™, Shopping.com®, Shopzilla™ and Froogle™ • Manage email marketing campaigns for your buyers • Integrated with eBay.com and eBay Stores listing formats, so you can tap a marketplace of 147 million customers directly from your Pro Store • Fine tune your store with tools to help with search engine optimization • Inventory Management • Automate inventory management functions, including re-order threshold notifications by product and attribute • View online low inventory and backorder reports • Hide products when products are out of stock, choose whether to display quantity available to customers, and enable backorders • Consolidate inventory management for all sales channels© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  35. 35. 27Option 3: Stream TeamStream team is the local web hosting and developing company which is currently providingMahany with the website. They have an add-on software suite which is called EcommerceTemplates that can be used to conduct E-business.2 This option is recommended due totechnical and cost reasons. The platform can be integrated with the current website as it is andcan be easily modified to our clients needs. Ecommerce Templates provides a powerful shoppingcart software solution integrating into the main HTML editors; Dreamweaver, Frontpage, GoLiveand CSS layouts. It is also possible to use our Generic version with an existing design.Administration • Full online control panel for simple admin management • Dynamically populate product pages without the need to touch the database • Password protected CSS based sinkable control panel • Simple process for adding / modifying / deleting products and categories • Full online order viewing by date selection and search • Product search within the admin section • Editable order details • Affiliate program included with online viewing of affiliate sales • Optional Customer login for order history viewing and creating accounts • Downloadable product inventory • CSV database upload • Language specific admin available • Up to 3 languages supported from the same database • MS SQL Server compatibleProduct / category options: • Unlimited number of products • Up selling of related, bestselling, recommended products as well as suggesting products purchased by other customers Show multiple currencies • Place products in several categories • Up to a depth of 10 levels of sub-categories • Extra detail page for more detailed product descriptions with layout options • Allows for use of HTML in product descriptions to make formatting simpler • Setup and assign Designers / Manufacturers / Drop Shippers to products and send them order details if required on receipt of orders • Provision of coupons so clients can purchase at a discounted rate by entering their coupon code • Apply discounts by product or category depending on total purchase or quantity ordered • Specify the number of products per page • Choice of product and category layouts, using one or multiple columns of products • Optional images choice for categories • Choice of product listing by price, id, user choice or alphabetically • Product options allow for the selection of color, size etc. with price differences shown in real time - choose between drop down menus and radio buttons • Allow clients to type in their own requirements for a particular product • Product options can have their own product ID • Clone products and product options for faster input2 Ecommerce Templates. ‘e-commerce templates’. © 2007 Shopping cart software by Internet Business Solutions SL - All RightsReserved - Ecommerce Templates™ and Ecommerce Plus ™ are registered trademarks of Internet Business Solutions SL. Availableat: http://www.ecommercetemplates.com/ [Accessed May 15, 2007].© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  36. 36. 28 • Wholesale / retail pricing depending on login • Quantity pricing option • Option of showing the "buy" button or an "Out of stock message" • Option of maintaining a product in your inventory but not showing on the store. • Stock management feature permits you to define the number of products in stock, and the store will automatically generate an "Out of stock" message once the last item in stock has been purchased • Stock management for product options • Show number of products in stock on the products page • Set minimum purchase total requirement • Email to friend link option - product specific • Choice of currency symbols and formatting • Change all store generated language from one place Option to remove buy / checkout buttons making the plus version compatible for other uses e.g. real estate listings, online catalog etc. • Order categories to suit your needs • Option of showing list price / your priceShipping / checkout features: • Weight based shipping by zone • Flat rate shipping • USPS shipping rate integration and order tracking • UPS shipping and order tracking • FedEx shipping and order tracking • Canada Post • Free shipping option (choose by country and / or total order or number of items purchased) • Price based shipping • Shipping estimator before checkout • Customer shipping carrier selector • Provide a different shipping method for international customers in respect to domestic buyers. • Global handling charge option. • Handling charge per payment provider • Offer customers a tracking number. • Compatible with all major tax systems (including Australia & Canada) • Offline credit card processing • Complete integration with the top payment processors, and / or email notification only • Order status look up page for customers • Automatic email to customers on order status change • Integrates PayPals Instant Payment Notification for secure order processing • Email notification once an order has been placed • Printable receipt on thanks page • HTML header and footer for the confirmation email • Download orders to a .csv file • Print packing slips from the admin orders page. • Print invoices from the admin orders page. • Collect email address on checkout. • "Remember me" option for return users. • JavaScript and Cookie disabled detection. • Block IP’s or IP ranges© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  37. 37. 29 • Design options • Choice of template editor - Macromedia Dreamweaver, Microsoft Frontpage or Adobe GoLive. • Search engine friendly options such as static pages and generated title and meta tags available • Original .png files included for editing graphics in Macromedia Fireworks • Global design changes made simple through Dreamweaver .dwt and .lbi files, FrontPage include pages or GoLive components. • Simple to change colors and personalize the store • Multiple CSS classes available for key display options • ALT information automatically added to category and product images • General features • Integrated product search page • Built in modular fashion, allowing for free future upgrades and addition of new features • 6 month free technical support • Downloadable User Manual • 30 day money back guaranteeThere are some disadvantages to using this package. At this time the package does not use aCRM system specifically used to asses market trends and at the same time provide value to thecustomer outside the selling process. However, using analytics such as Google Analytics andWeb trends it is possible to research a custom add on to E-commerce templates. Anotherdisadvantage is the fact that multiple portals have to be used to gather data. For example: PayPal has to be use in this case to keep track of accounting for the system.Costs and Justification:Costs involved with an EBay store: Figure 8: eBay Store costs.Starting at just 5¢ for every 30 days, regardless of quantity, Store Inventory allows you to offer agreater range of inventory at a low cost.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  38. 38. 30Figure 9: Inventory Insertion CostStore Inventory format basic fees:As an eBay Store owner, youll have access to an additional listing format called Store Inventoryformat. Using this format to list the items at a set price, buyers can purchase items immediately(no bidding).These listings have a longer duration and lower Insertion Fees but have limitedvisibility compared to the Online Auction and Fixed Price formats. If your item sells, you also paya Final Value Fee.Figure 10: eBay Fees.Basic Store Picture Storage space: • 50 MB for $9.99 per month • 250 MB for $14.99 per month • 1 GB for $24.99 per monthFeatured Store Picture Storage Space: • 50 MB for $4.99 per month • 250 MB for $9.99 per month • 1 GB for $19.99 per monthAnchor Store Sellers can subscribe to any Picture Manager tier for free.Costs involved with an Advanced Pro Store: • Monthly subscription fee of $74.95/month • 0.50% Successful Transaction Fee charged on the final selling price of successfully sold items • Set-up fees are currently waived for all new Pro Stores subscribersCosts involved with an Advanced Pro Store:Cheaper than its competition, an E-Commerce solution is being provided for $450 by StreamTeam. With this kind of money our client receives the entire package including options tocustomize the suite to meet any future need that may arise.33 (Stream team)© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  39. 39. 31Justifications: Figure 11: Mahany website statistics.Since the launch of the website in mid 2005, it can be interpreted that a significant portion of thequarterly visits (potential customers) were all the business that Mahany did not get over the lasttwo years.Figure 12: Mahany website statistics.It can be said that since the most active day of the week is a Monday, the potential visitors to thesite are businesses. This can also be backed up by the following bar chart, where one noticesthat a majority of the customers are Commercial enterprises. One can also notice that the mostactive hours are between one o’clock and two o’clock in the afternoon. It is also likely that thesevisitors are businesses who may be seeking to purchase the products Mahany has to offer.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  40. 40. 32 Fig 13: Mahany website trends.The research team recommends using Stream Team’s solution for the online store. The totalcost of this solution will be $450, as quoted by Steam Team. The following table compares thethree solutions and the features they provide. Benchmarking of the three stores against services they provide. Online Marketing Tactic EBay Pro Stores Stream Team (E-Commerce Template) CRM X X Branding X X Shipping X X X Online Payments X X X Full Customization X Monthly costs X X One time costs X High set up time X Medium set up time X Low set up time X Fully integrated X X Partially integrated XTargets and Metrics:The goal of the online store is to generate at least $1,250 in sales each month, or $7,500 in thefirst six months of implementation. Mahany can use Google Analytics to track this conversion.The following table lists the metrics and targets for this tactic. Tactic Metric Target Control MechanismOnline Store Online Sales (monthly) $1,250 a month Google Analytics Online Sales (6-months) $7,500 in 6 Google Analytics months© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  41. 41. 33Tactic 2: E-ProcurementDescription:This is the management of the various goods that Mahany purchases from its manufacturers.Since the client is working on an E-business the system should mainly deal with the control ofmaterials, product information, and price information in a network consisting of suppliers,manufacturers, distributors and customers.ExecutionSince the client is in the beginning stages of moving part of its business online the consultantsrecommend that we make room for this complex system be added on at a later time. Currently itis possible to use the legacy system which is in place to track inventory and sales for thecompany’s online store. However, there are manufacturers of welding supplies who make E-procurement available to their customers.Miller is one of manufacturers who Mahany purchases from. They have an online sales andcustomer service where Mahany can take advantage of the following services. • Pricing • Product Availability • Order Status • Order History • Shipment Tracking • Product Information • Owners Manuals • Service Memos • Technical Manuals • Training Resources • PhotosSince this tactic will not be implemented as part of this marketing plane there are no costs,metrics or targets set by the research team.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  42. 42. 34Online Branding1The Online Branding strategy builds the Mahany brand online in order to increase the perceivedvalue for its current customers and potential customers. It also builds trust and reputation andsupports the other three strategies. By creating value for its current customers this strategy isworking towards the first objective. It also works towards increasing awareness of Mahany’sproducts within the current customer base and thus encourages repeat purchase (objective 2)and it contributes to the conversion (from lead to sale), which is the last objective.Tactic 1: Website DesignDescription:The research team advises Mahany to redesign its website with pictures, working onlineregistration, adding content to its pages, and providing logos to its website. Mahanys webdesigners Stream Team will be redesigning the website and making the site more user friendly tothe eye.Execution, Costs and Justification:The research team recommends making the following changes and additions to Mahany’swebsite:1. Homepage - The research team recommends that Mahany changes its homepage and to writeits motto underneath the Welcome to Mahany Welding Supply slogan. The motto to include withthe Stream Team’s back-end software is “We don’t have customers; we have friends who buyfrom us”. A mission statement will be added as a substitute for the welcome to Mahany slogan.Also the homepage needs to make the customers more aware of its offerings. Mahany shouldadd in a quote on the homepage in the top right hand corner stating “we do training,” and also“we do rentals”. The mission statement will include the values of image, profitability, productivity,customer lifetime value and reliability. The mission statement could possibly be addedunderneath the downtown and headquarters locations.Mahany’s homepage will have a sepia color background added to display its historic appeal andaged look. Sepia is a dark grayish yellow brown color that would be most effective to portrayvisually Mahany’s 61 years of existence. Mahany also needs to add a history toolbar to itshomepage. The main banner should include “since 1946” to Mahanys logo in small text. On theupper right hand corner of Mahany’s homepage banner advertisement there should be Mahany’simage award as a substitute for the current picture of a welding radiator. Mahany has a lot ofpride in its image award and will show it by replacing the radiator with the 2005 welding imageaward.It will cost $300 and take four hours of work to accomplish this tactic, according the StreamTeam’s quote. The changes to the homepage would be in the power of the owner of the domainname Mahanyweld.com, Mike Krupnicki himself. Mahany needs to make customers aware of itslong term existence and this is a great way of achieving this.2. Mahany in the news - The news section should only be one link instead of two in order toeliminate the confusion for the user. The addition of PDF’s to articles and thumbnails for links with1 ROWLEY, J., 2004. Online Branding. Online Information Review, 28 (2), 131.© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  43. 43. 35pictures is also recommended as is making training only one toolbar instead of two. A list ofclasses in the training toolbar should also be added to the site. News headlines should bechanged to the current 2007 year since all dates are currently based upon 2006. On thehomepage Mahany’s 5 great years section should be changed into a history toolbar instead thatwill show Mahany’s sixty one year old history. Mike Krupnicki feels that Mahany should be proudof its heritage and would like to see the content in this particular area change. Mr. Krupnickiwould like to add some of Mahany’s key accomplishments and this is certainly recommended bythe research team.This section will cost $525 dollars and will also not be user generated and easy for Mike to makethe changes necessary, according the Stream Team’s quote. The Stream Team will add thesepia colored back drop and include a history timeline for Mahany’s greatest years emphasizingthe last five years the most. Mahany has not been able to explain what its courses are truly aboutand/or been able to tell its company’s story to the public. There is no information or content onMahany’s site stating what the classes truly offer. Mahany’s site will feel up to date for thecustomer and also show that Mahany is proud of its 61 year old history.3. Services and Training - Under the services toolbar there is a training section which needs to beeliminated because there already is a training toolbar. Registration for course outline PDF links ofwelding training programs should be made. The sign up for welding classes online should actuallywork. Mahany’s online registration form has not worked as of lately and should be functionalagain. Profiles of the professionals who work with the training program should be added. Thereshould be more space for name, street address, city, zip code, day time phone, email, profession,and/or employer. Both profession and adding employer should be optional although a privacystatement should go along with any information that a customer wishes to give to Mahany for thepurpose of a training class.The training section should also include all of Mahany’s major accomplishments such as: 1. 1500 students in five years added to their training program 2. Partnering with three local colleges 3. First welding company in Rochester to offer training programs.Mahany is also in dire need of a privacy statement for its course offerings and website. Anexample of a privacy statement done by Trust-e which is used by the social networking companyFacebook is depicted in figure 15 below:© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  44. 44. 36Figure 15: A Sample Privacy Statement.This change to the site will cost $75, according the Stream Team’s quote, and only take one hourto do. Mahany needs to make its customers aware that training is one of Mahany’s keydifferentiators in comparison to its competitors.4. Courses - The courses section includes all of Mahany’s course offerings. The courses that arecurrently available are its MIG course, TIG course, MIG clinic, TIG clinic, and its sculpture course.Mahany currently does not clearly state when these particular courses are offered. In the springMahany should show that it in fact offers five courses. In the winter it offers four courses and inthe fall it offers five courses. The setup should be a 5-4-5 outlining which exact courses occurduring the appropriate given season. Yet Mahany’s sculpture class only is offered in the monthsof December and April.This part of changing the website will cost $75 and only take an hour to do, according the StreamTeam’s quote. Mahany has not been thorough with its description of courses and is particularlyvague and this tactic makes up for this shortcoming.5. Rentals - Mahany currently does rentals for stick welding, plasma welding, engine drivenwelder generators, voltage sensing feeders, and magnetic base drills. Mahany will add in all of© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required
  45. 45. 37these rentals to its site. This section will cost $75 and is user generated so Mahany can easilymake the changes themselves. Mahany needs to be clearer on exactly what specifications therentals have and the time period that you can rent machines and welding materials for, as wellbeing able to see the rentals that Mahany provides to its customers.6. About Us Section - Pictures of employees should be added that are in association withsomething fun that the employees like to do or enjoy. The pictures should not be mug shots ordull in any way, shape, or form. The pictures should be added in terms of employee tenure. Newslide shows should be added and new portfolio pictures for the slide shows should be added tothe site. Between twelve to twenty pictures of people holding certificates, projects, and sparkpictures should be added to the site. This section will cost $75 and be user generated and easy tomake changes with.Also the “coming soon” under the product link will be eliminated from the site, along with theproduct line card. Since the products are already listed there is no need to add a line card or haveproducts being the same thing as coming soon.7. Equipment Repairs - The section on services on Mahany Welding Supplys website appearsvery bare and does not make an effort at showing its pride in this particular area. Mahany shouldshow its customers what it can do for them in regards to equipment repairs. Mahany needs toexplain what it offers to its customers such as: torch repairs, electric machine repairs, regulatorsrepairs, calibrations repairs, preventive maintenance, and warranty repairs. Especially in order togain a higher ranking in web searches having a high level of text and content definitely helps awebsite receive a higher ranking in searches. Mahany should add a picture of each repair that itoffers its customers. Also pictures of people doing equipment repairs will be implemented as well.As seen on the website, depicted in figure 16 below, this area is flat and in need of restructuring.The cost will be $75 and only take an hour to implement. Figure 16: Mahany’s current “Equipment Repair” webpage.8. Other Changes - The ‘coming soon’ page under the product link should be eliminated from thesite, along with the product line card. Since the products are already listed there is no need to adda line card or have products being the same thing as coming soon. Mahany should also change© 2007 Brick City Consultants: Lejla Hajdarhodzic, Sean Liebel, Jake Malarz, Qazi Mohammad – Permission Required

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